TORONTO, Jan 22 (Reuters) - Canada's main stock index advanced on Thursday to its highest level in two weeks as investors cheered the European Central Bank's stimulus measures and an unexpected rate cut by the Bank of Canada.

Bank of Canada's interest rate cut on Wednesday was meant to ease the impact that weaker oil prices are having on the economy. The move fueled a 1.8 percent jump in the TSX on Wednesday.

The ECB on Thursday launched a government bond-buying program to inject hundreds of billions of euros into euro zone's flagging economy.

The central bank moves helped the Canadian benchmark index turn positive on the year, recovering from a slump in the energy sector that was triggered by lower oil prices.

"Overall, the market is taking this quite positively," Colin Cieszynski, chief market strategist at CMC Markets, said of the ECB announcement. "It's quite favorable. It was a little more aggressive than what the market expected.

"The bottom line is that there's massive stimulus coming through for economies around the world," he added.

The Toronto Stock Exchange's S&P/TSX composite index was up 106.29 points, or 0.73 percent, at 14,666.71. All 10 main sectors on the index were higher.

The price of bullion strengthened after the ECB's action and pushed up shares of gold miners. Barrick Gold Corp jumped 2 percent to C$16.

In corporate news, Royal Bank of Canada said it will buy City National Corp, a U.S. lender serving high-net worth clients, in a $5.4 billion deal. RBC shares shed 2.4 percent to C$74.08. (Editing by Leslie Adler)